As a blooming state across India, Karnataka has the most industries and manufacturing plants. And world bank also put Karnataka in the 17th position out of 36 states in the world for ease of doing business. To start a business in Karnataka is simple and easy as compared to other states of India due to the number of businesses and industries are opening in Karnataka. Karnataka is also giving a lot into in India economy by taxes. Earlier there was a number of taxes and there was lot of confusion and complexity in taxes. In the year 2014 Government of India introduced GST (good and service tax) to remove number of taxes and confusion among people and to make tax easy and simple for the people of India. GST is a 16-digit number and everyone has a unique GST number. The government of India made it mandatory for every business house to register themselves in GST in Karnataka. In this article, you will know about how to get GST registration in Karnataka.

GST helps to reduce the burden of multiple taxes from the government as well as from people. GST makes taxes simplify. GST has been eliminated taxes like VAT, service tax, etc. The concept behind GST is one nation one tax. 

Eligibility to get GST registration in Karnataka

Aggregate turnover 

Whosoever having a service business and also have annual turnover rupees 20 lakhs or more or whosoever involves is supply of goods business and have annual turnover 40 lakhs or more are eligible to register themselves in GST. If anyone is having service business and annual turnover is less than 20 lakhs or anyone is in supplying of goods business and having annual turnover less than 40 lakhs then she/he is not required to get GST registration.

Interstate business 

Those who are doing business between two or more states shall be registered under GST. For example if person A from Delhi is supplying goods to person B residing in Mumbai than in this case both of them need to be registered under GST.

E-commerce plate form 

E-commerce is an online business whosoever is doing or wants to do e-commerce business needs to be registered under GST. Without registration, no one can do e-commerce business. In e-commerce, business registration is mandatory regardless turnover of the business.

Casual taxable person

People who involved in supply of goods or services on temporary basis are also required to take GST registration or people who are involved in supply of goods and services but does not have permanent place are also required to take GST registration.

Although there is no validation period for GST once you get GST number it is will be valid until your business is running. But in case of casual taxable person the GST number valid up to 90 days only.

Types of goods and services 

So basically, there are two types of goods and services;

1. First there are taxable goods and services. Which means those goods and services on which tax is imposed by the Government of India. 
2. Second there are non- taxable goods and services. And it is vice versa of taxable goods and services. Which means those goods and services on which tax is not imposed by Government of India.  

Advantages of GST registration in Karnataka

E-commerce 

Any one can start e-commerce business if they have registered themselves under GST. Without registration under GST no one can start e-commerce business in Karnataka.

Interstate 

People who want do interstate business they can do with registration under GST. Without registration no one can do interstate business.

Legal recognition 

All the businesses who get them registered under GTS get recognition from the state as well as central Government of India. And also, some benefits from Government like tax credits. Unregistered person cannot get tax credits.

Collection of tax 

A registered person is legally entitled to collect tax from the buyer. An unregistered person shall not be entitled to collect tax legally.

Mandatory Documents required for the GST registration process in Karnataka

Documents vary from business-to-business different type of business required different types of documents.

For Sole Proprietorship and Individuals.

1. PAN card details of the individual or owner is mandatory
2. Owner’s passport size photograph proof
3. Evidence of permanent address 
4. Bank detail of the owner.
5. Aadhaar card details of the individual or owner

For LLPs (limited liability partnerships) and Partnership:

1. Address evidence of partners
2. Bank details of the owner 
3. PAN card details of the partners
4. Deed of partnership declaration
5. Passport size Photograph proof of all partners
6. Evidence proof of LLP registration
7. Main address evidence for the company
8. Proof of the signatories’ appointment
9. Aadhaar card details of the authorized signatory

For Hindu Undivided Families

1. Bank details of the owner 
2. Passport size Photograph proof of the owner
3. Proof of permanent address of the company
4. PAN card details of HUF
5. PAN card details of the Family Patriarch

For Companies

1. PAN card details of the business
2. All business executives’ PAN card details
3. Primary address proof of the company
4. Bank account details of the company
5. Evidence of appointment of the signatory
6. PAN card details of the signatory
7. MoA (memorandum of association and AoA (article of association)
8. Aadhaar card details of the signatory
9. Certificate of incorporation from the Ministry of Corporate Affairs.
10. Proof of permanent address of all managers

Conclusion

GST^[1] is just not a 16 digits number. it helps the Government to keep records of businesses and timely collection of taxes from all the business houses. Every business house shall go for registration for the GST number in Karnataka because it will give legal benefits to them. For more details contact with GST expert.

Read our article:All You Need to Know about Different Types of GST Invoice